The housing market in Israel is facing serious issues, with about 85,000 new apartments waiting for buyers, while demand remains high. Young families struggle to purchase an apartment due to high interest rates and financing costs, which leads them to turn to the rental market, where supply is also limited. As a result, rental prices continue to rise, complicating family budgets and impacting inflation.
However, there is an immediate solution to the crisis: among the unsold apartments, about 15,000 to 20,000 apartments are already completed and can be occupied immediately. The state can allow developers to convert part of the inventory into long-term rentals, while providing tax incentives and regulatory relief. This way, renters will benefit from increased supply and fixed prices, and the state can curb inflationary pressures.
This move offers an efficient economic solution that can alleviate housing and living cost issues in Israel, without waiting for long-term plans. Only a courageous decision from policymakers is needed to take advantage of the current situation.